Shipbuilding in India

India’s shipbuilding industry is rapidly expanding, with projections indicating growth from $1.12 billion in 2024 to $8 billion by 2033. However, despite this promising trajectory, the country still faces a major challenge: dependence on foreign suppliers for marine engines, which hinders the sector's full potential.

Current Status and Growth Trends

1. Market Value Surge:

   • From $90 million in 2022 to $1.12 billion in 2024, India’s shipbuilding industry is on a strong growth path, with a CAGR of 60%.

   • Projections indicate this market will hit $8 billion by 2033. This represents a significant expansion but still places India behind global leaders like China, South Korea, and Japan, which together dominate 94% of the global market.

2. Global Standing:

   • Despite its growth, India's share in the global shipbuilding market is a mere 0.06%.

   • The country also spends about $90 billion annually on sea freight, predominantly relying on foreign-owned vessels.

3. Marine Engine Dependency:

   • 90% of engines on Indian commercial and naval vessels above 6 MW come from just five global OEMs. This makes the industry highly dependent on foreign technology and suppliers, limiting innovation and increasing costs.

   • Moreover, modern marine engines are often embedded with proprietary software and intellectual property (IP), which locks India into foreign supply chains, particularly in terms of maintenance, updates, and diagnostics.

4. India’s Future Plan:

   • India aims to become a top-five shipbuilding nation by 2047. Achieving this requires technological self-sufficiency and the development of indigenous marine engine manufacturing capabilities.

India's shipbuilding industry plays a crucial role in the country's maritime sector, spanning different categories of vessel construction.

Categories of Shipbuilding in India

1. Large Ocean-Going Vessels:

   • These ships cater to both overseas and coastal trade. They are typically large commercial vessels, including cargo ships, oil tankers, and bulk carriers, crucial for global trade.

2. Medium-Sized Specialized Vessels:

   • These include port crafts, fishing trawlers, offshore vessels, and inland waterway crafts. These vessels are primarily used for domestic and regional trade, fisheries, and offshore energy operations.

3. Defence/Naval Crafts and Coast Guard Vessels:

   • India has a strong defense shipbuilding capacity, including naval vessels, coast guard ships, and patrol boats. These vessels are crucial for ensuring maritime security and defense preparedness.

Major Shipyards & Research Facilities in India

India has several public sector shipbuilding and ship repairing companies that cater to both commercial and defense needs. The key players are:

Under the Ministry of Ports, Shipping & Waterways (MoPSW)

1. Cochin Shipyard Limited (Kochi):

   • One of India’s largest public sector shipyards. It is involved in building ocean-going vessels and specializes in the repair and maintenance of ships and offshore structures.

2. Hooghly Cochin Shipyard Limited (HCSL):

   • Based in West Bengal, this shipyard is also a key player in building both commercial and defense vessels.

Under the Ministry of Defence

1. Hindustan Shipyard Limited (Visakhapatnam):

   • Specializes in naval shipbuilding, submarine construction, and ship repairs for the Indian Navy and Indian Coast Guard.

2. Mazagon Dock Limited (Mumbai):

   • Mazagon Dock is a leading manufacturer of warships, submarines, and offshore vessels. It plays a significant role in defense shipbuilding for the Indian Navy.

3. Garden Reach Shipbuilders and Engineers Limited (Kolkata):

   • This shipyard focuses on building warships, patrol boats, and offshore structures. It is also a major supplier for the Indian Coast Guard and Indian Navy.

4. Goa Shipyard Limited (Goa):

   • Specializes in the construction of naval ships, offshore vessels, and small crafts for both defense and commercial purposes.

Under State Government Control

1. Shalimar Works Limited (Kolkata):

   • Primarily engaged in the construction of specialized vessels and ship repairs.

2. Alcock Ashdown & (Co Gujarat) Ltd.:

   • A privately-owned shipyard focusing on the construction and maintenance of small to medium-sized vessels.

Research and Development Facilities

India's shipbuilding industry is supported by several R&D facilities aimed at enhancing the design, manufacturing, and maintenance of ships. Some prominent research and innovation hubs in India include:

1. Cochin University of Science and Technology (CUSAT) – School of Engineering:

   • Works on advanced ship design and shipbuilding technologies.

2. Defence Research and Development Organisation (DRDO):

   • DRDO has played a pivotal role in defense shipbuilding, particularly with its focus on naval vessels and submarine development.

3. Indian Institute of Technology (IIT) – IIT Madras, IIT Kharagpur:

   • IITs contribute significantly to shipbuilding technology and marine engineering research, working on advanced propulsion systems, marine renewable energy, and ship design innovations.

4. Indian Maritime University (IMU):

   • IMU conducts research related to maritime operations, naval architecture, and marine engineering, providing valuable technical support to the shipbuilding sector.

Challenges in Building Marine Engines

1. Technological Gap:

   • Modern marine engines involve proprietary Electronic Control Units (ECUs), closed-source software, and IP-restricted components, creating a technological bottleneck.

   • India lacks the design capabilities to develop high-performance marine engines that balance propulsion efficiency, emissions control, and durability.

2. Import Dependencies:

   • Over 90% of the marine engines used in India are sourced from foreign manufacturers, making the nation vulnerable to supply disruptions, export controls, and pricing volatility.

   • Marine engines typically constitute 15-20% of the total cost of a ship, and their performance directly affects the emissions and lifecycle of the vessel.

3. Export Control Frameworks:

   • International regulations like the EU Dual-Use Regulation, U.S. Export Administration Regulations (EAR), and Japan’s METI licensing controls can impose embargoes on marine engine supply based on national security concerns.

4. Design Capability Deficit:

   • Marine engine design requires a multi-parameter optimization approach. India's lack of indigenous design capabilities severely limits its ability to produce competitive marine engines.

   • Additionally, tribology (the science of wear, lubrication, and friction) plays a significant role in engine efficiency, and India lacks industrial ecosystems for precision surface engineering and micron-level machining.

5. Metallurgical Limitations:

   • India's ability to produce high-end materials like high-chromium steels, nickel-based superalloys, and thermally stable composites is still in its infancy, impacting the production of advanced marine engines and aero-engines.

6. Outdated Training Infrastructure:

   • Indian engineering institutes continue to rely on outdated training models. Given Alang, the world’s largest ship-breaking yard, is located in India, there’s an opportunity to repurpose decommissioned engines for training and reverse engineering.

Government Initiatives and Efforts

1. Shipbuilding Financial Assistance Policy (SBFAP):

   • The government provides financial support to domestic shipyards, encouraging the production of specialized vessels such as wind farm installation ships and advanced dredgers.

2. Financial Assistance and Green Fuel Subsidies:

   • Ships powered by green fuels like methanol, ammonia, and hydrogen fuel cells receive up to 30% subsidy under SBFAP.

3. Procurement Preferences and Infrastructure Status:

   • Ships costing less than ₹200 crores must be procured from Indian shipyards.

   • Infrastructure status for shipyards allows for access to cheaper long-term capital.

4. Right of First Refusal (RoFR):

   • Indian shipyards have priority in government tenders, ensuring more domestic contracts for shipbuilding.

5. Union Budget 2025:

   • Several transformative initiatives include the creation of mega shipbuilding clusters, a ₹25,000 crore Maritime Development Fund, and customs duty exemptions for critical imports.

6. Indigenous Engine Initiatives:

   • The Indian Navy sanctioned ₹270 crore in April 2025 to Kirloskar Oil Engines Ltd to develop a 6 MW medium-speed diesel engine.

Way Forward

1. Encourage Marine Propulsion Startups:

   • India must foster an innovation ecosystem by supporting marine propulsion-focused startups with design-linked incentives and targeted R&D funds.

   • These startups can bring agility, risk tolerance, and interdisciplinary approaches crucial to developing indigenous marine engines.

2. Public-Private Partnerships:

   • To fuel innovation, the government should provide public procurement guarantees and facilitate lab-to-market transitions through institutes like IIT Madras.

3. Dedicated Propulsion Innovation Missions:

   • Establish national frameworks that focus on marine propulsion innovation, including the development of domain-specific software for combustion simulations, 3D mechanical designs, and control systems.

4. Access to Marine-Grade Testbeds:

   • Providing testbeds for startups and research institutions will enable them to simulate and test real-world marine engine performance and improve design.

5. Develop National Standards for Manufacturing:

   • India must develop national standards for the production of marine engines that meet international benchmarks in terms of efficiency, emissions, and durability.

Conclusion

India’s maritime ambitions are growing rapidly, but to truly become a global shipbuilding leader, the country must focus on building its indigenous marine engine manufacturing capabilities. While significant strides have been made with government initiatives and strategic investments in infrastructure, there’s still a technological gap that needs to be bridged.By developing a robust innovation ecosystem for marine propulsion technology, supporting startups, and investing in advanced materials, India can reduce its reliance on foreign suppliers, ensuring a self-reliant maritime sector. This will not only help India achieve its goal of becoming a top-five shipbuilding nation by 2047 but also solidify its position in the global maritime industry.